    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book III)]
    [November 21, 2004]
    [Pages 2994-2998]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's News Conference With President Ricardo Lagos of Chile in Santiago
    November 21, 2004

        President Lagos. My good friend President Bush, Laura, members of
    the President's delegation, members of my administration, authorities,
    friends: We're very pleased, for the third time this year, to meet with
    President Bush and to be able to continue in this way with a modern,
    mature relationship which our two countries have been able to achieve
    historically.
        As I was telling you, you're not the first George Bush to come to La
    Moneda. His father was here when we worked in order to consolidate our
    democracy. But you're the first President to come here at the dawn of
    the 21st century. And as a consequence, we must use all our energies
    towards a future agenda, an agenda in which most of the time we will be
    in agreement; sometimes we won't. But that's life, and that's what a
    more mature and a richer agenda can do for you.
        Our area of cooperation is extremely broad. We share essential
    values which make our ties stronger. We want democratic societies that
    are pluralistic, in which the capacity for enterprise will be an
    opportunity for many--open societies. As we've said over the past few
    days, economic growth and trade are incompatible with terrorism and
    incompatible with corruption. For that reason, the decisions we're
    making at this APEC meeting.

        Today too we have reviewed the progress of the free trade agreement
    between Chile and the United States. After 9 months of enforcement, this
    agreement has led to major results. Our shipments to the United States
    have increased by 27 percent. The shipments from the United States to
    Chile have increased by 25 percent. And the free trade commissions of
    both countries continue working in order to be able to fulfill the
    obligations we still have outstanding and, at the same time, to
    accelerate the removal of tariffs.

        Today, for us in Chile, 1,350 companies are sending to the United
    States over 1,350 products, which ties in directly with the

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    creation of jobs here in Chile. Trade, therefore, equals more and better
    jobs. More and better jobs consolidate a democracy.
        And we have other fields of cooperation. And that's why we spoke
    about the English language and how important it is to be able to foster
    through our ministries the learning of English. As a country, we wish to
    be a bridge. We want to be a bridge and a platform in the flows of
    international trade and the flows in the Asia and Pacific region.
        We also spoke about Latin America. We spoke about the importance
    that our commitment in Haiti has and the reasons why we are present in
    that country and why we need the cooperation of many to be able to move
    Haiti forward. We want there to be elections in Haiti, but this requires
    the conditions for elections, so that there is a possibility of good
    governance in the long term. We've also pointed out that the political
    reality shows itself in many areas where they feel that progress is not
    reaching them. In the Americas, we need to work within our governments
    so that progress reaches those who need it most. And we definitely
    believe that economic progress and social progress are basic.
        And the President was kind enough to talk to us as well about issues
    of international peace. We have very closely followed the position of
    President Bush on the situation in the Palestine and the prospectives of
    consolidating a state there with a democratically elected government as
    a way for Palestinians and Israelis to be able to live together in
    peace.
        And, why not say this as well: We've agreed in today's meeting on
    the need to push forward the negotiations for the Doha round in the WTO.
    There we need to lend all our efforts for that international forum to be
    able to reach rules for freer, fairer trade and thus be able to cement
    the futures of our countries.
        And so we have agreement on bilateral issues, regional issues, and
    modestly speaking, multilateral issues. And that, therefore, is the
    reason why we have so much ahead of us. And for all of that, your visit
    here today is a very welcome one, and we Chileans are happy to have you
    with us. You are welcome, sir.
        President Bush. Thank you, Mr. President. Thank you very much.
    Laura and I are pleased to be here in Chile, and
    we thank the President and Mrs. Duran
    and the people of this fantastic country for the wonderful hospitality.
        I'm honored to stand with the President of this great nation. I
    congratulate President Lagos on hosting the APEC Leaders' Meeting and on
    helping to ensure its success. You did a really good job.
        Chile is a remarkable country. Chileans are a good-hearted people
    who treasure their freedom. They're committed to democracy. The people
    of this country understand the importance of economic freedom. Modern
    Chile insists on the rule of law by ensuring the basic rights and
    freedoms of its people. The prosperity and progress that grow from this
    conviction is important. It's important for Latin America, and it's
    important for the rest of the world.
        The United States and Chile are partners in addressing the
    challenges and opportunities facing our hemisphere. President Lagos and
    I agreed that the surest path to prosperity is through free and fair
    trade. Success of our free trade agreement is a model for other
    countries. Exports have risen dramatically in both our countries, and
    both the Chilean people and the people of the United States have
    benefited. And through the establishment of free trade in the Americas,
    we are committed to a future in which every free nation in the
    hemisphere can share in the benefits of open markets and in the creation
    of new jobs.
        The friendship between our two peoples is deeper than the ties of
    commerce. The United States and Chile also share a strong commitment to
    human freedom. Today President Lagos and I discussed ways to strengthen
    democratic institutions throughout the Americas and around the world.

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    I appreciate his advice. I enjoy listening to his wisdom. Chile plays a
    leading role in the Community of Democracies, a caucus of democratic
    nations from every corner of the world whose representatives meet
    regularly to support the advance of freedom. Chile will host the next
    ministerial meeting of the Community, and we look forward to those
    discussions, which will examine ways to spread the benefits of liberty.
        The President and I also reaffirmed our determination to fight
    terror, to bring drug trafficking to bear, to bring justice to those who
    pollute our youth, to bring greater security and stability to our
    hemisphere. Chile has been a leader in the efforts to strengthen
    security initiatives among the nations of the Americas, and I appreciate
    your leadership, Mr. President.
        Your nation has expanded joint military exercises and security
    cooperation with key regional partners. Chile has sent 600 troops to
    support peacekeeping operations in Haiti, and we thank you for that
    strong contribution. Chilean soldiers have also made important
    contributions to peacekeeping efforts in Cyprus, in East Timor, and
    Bosnia. These are the actions of an ally of the United States, a good
    citizen of Latin America, and a friend of liberty.
        Along with my fellow citizens, I look forward to a future of even
    stronger and closer relations between our two countries in the years
    ahead.
        Thank you for your hospitality.

    Trade Relations With China/U.S. Deficit

        Q. President Bush, good afternoon. China has a very close
    rapprochement with Latin America, a lot of investment in this region.
    And in your second Presidency, are you going to do anything so you don't
    lose your influence in this region? And second, many business people are
    worried if you're going to be doing anything about the fiscal deficit in
    your country during your second term.
        President Bush. First, China is a growing country. Today we heard
    from Hu Jintao about the phenomenal growth rates
    that he expects for his economy, and that's positive. I think it's
    helpful for there to be universal prosperity. China represents great
    opportunities for Chile and the United States. And we look forward to
    working with China. We've got a lot of trade with China, and we want to
    continue to have good trading relations with China.
        We got a lot of trade in the hemisphere. We got a free trade
    agreement with Chile. NAFTA is a strong driver for prosperity in our own
    neighborhood, and we'll continue to advance free trade throughout this
    hemisphere. I, frankly, don't view trade--China's actions and the
    actions of the United States as zero sum. I view it as a positive
    development.
        Secondly, at the meeting today people expressed concern about the
    value of the U.S. dollar, and I reiterated the fact that my Government
    has a strong dollar policy. And the best way to affect those who watch
    the dollar's value is to make a commitment to deal with our short-term
    and long-term deficits.
        As far as our short-term deficit goes, I'll present a budget that
    continues us on the path to reducing our deficit in half over a 5-year
    period of time. We're in the fourth year of--first year of--we finished
    the first year of a 5-year period to reduce the deficit in half.
    Congress is working on the appropriations bill that meets those targets.
    I look forward to signing it when they come back and finally finish the
    package in early December.
        A long-term deficit issue really relates to unfunded liabilities
    when it comes to Social Security and Medicare. In my recent campaign, I
    made it clear that I think it's very important for us to address those
    long-term unfunded liabilities. For example, in Social Security, I
    talked about the need for personal savings accounts for younger workers
    as a part of a solution. Frankly,

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    the Chilean model serves as a good example for those that are going to
    be writing the law in the United States.
        And so my commitment to the international world is that we'll deal
    with the short-term deficit and the long-term unfunded liabilities, so
    that people can then take a look at our dollar in terms of fiscal
    austerity in Washington.
        Press Secretary Scott McClellan. The
    first question from the American press will come from Finlay Lewis of
    Copley News Service.

    Temporary-Worker Program

        Q. Thank you, Mr. President. Your administration recently received a
    letter from 21 or 22 Members of the House raising skeptical questions
    about your guest-worker program. Now, you met with President Fox earlier
    today, and I'm wondering how much--specifically how much political
    capital--that you're so proud of--you're going to spend on trying to
    overcome the built-in resistance to that plan. Specifically, what kind
    of steps are you proposing to take to sell it to the Congress?
        President Bush. Finlay, I am proud of my political capital. That's
    what you get when you win an election, and in the course of that
    election, I talked about immigration reform. I think it's important for
    our country to recognize that people are coming to our country to do
    jobs that Americans won't do, and therefore, I think a program that
    recognizes the desire of some to come to America to work and the desire
    of some in America to employ them makes sense. It makes sense not only
    for our economy; it makes sense for border security. We'd much rather
    have security guards chasing down terrorists or drugrunners or drug
    smugglers than people coming to work. And so therefore, I think a guest-
    worker program is important, and I look forward to working with Congress
    on it.
        I get letters all the time from people that are trying to steer me
    one way or the other when it comes to legislation. But I'm going to move
    forward. In the letter, I noticed that they said, ``Well, this is
    because''--they're objecting to the program because it's an amnesty
    program. It's not an amnesty program. It's a worker program. It's a
    program that recognizes, however, that if somebody wants to become a
    citizen in the United States, they can get a line--in line with the
    people who have done so legally. I think it's necessary. I think it's an
    important piece of legislation. I look forward to working it. You asked
    me what my tactics are. I'm going to find supporters on the Hill and
    move it.

    Iraq

        Q. President Bush, good evening. Conservative calculations say that
    the Iraqi war has left many dead. This action has led to enormous
    protests all over the world. This week we saw them in Chile. You stated
    that you like to hear the wisdom of President Lagos. At any point did
    Chile say no to this invasion--Chile did say no to this invasion. Who
    was right and who was wrong? And how can we change this negative image
    of the White House that exists in large parts of the world right now?
        President Bush. President Lagos didn't agree with my decision, and I
    respect that. He's still my friend.
        Secondly, whether people agree with my decision or not, there are
    two things that they've got to agree with: One, the world is better off
    with Saddam Hussein not in power; and
    secondly, it is important to succeed in Iraq. It's important to develop
    a democracy there. I fully recognize some do not believe that a
    democracy can take hold in Iraq. I strongly disagree. I believe not only
    democracy can take hold in Iraq; I believe a democracy will take hold in
    Iraq.
        I noticed today that the elections are on schedule for January* the
    30th. Think how far that society has come from the days of mass grave
    and torture chambers to a

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    day in which they're going to be voting for a President. Prime Minister
    Allawi, the current leader of Iraq, is a strong,
    capable democrat. He believes in the possibilities of the people of
    Iraq, and he knows that a free society will unleash those possibilities.
    ---------------------------------------------------------------------------
        *White House correction.
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        And so the United States of America will stay the course, and we
    will complete the task. We will help Iraq develop a democracy, and the
    world will be better off for it. Free societies don't attack each other.
    Democracies listen to the aspirations of their people, not feed hatred
    and resentment and future terrorists. And what we're doing is the right
    thing in Iraq, and history will prove it right.
        Press Secretary McClellan. Mark Silver
    from the Chicago Tribune.

    Legislation To Restructure the Intelligence Community

        Q. Thank you, Mr. President. With the intelligence reform bill
    apparently failing, how confident are you that Secretary Rumsfeld is not
    partly responsible for that? Is there something more you, personally,
    could have done? And what does this say about your ability to achieve
    your own legislative agenda in the next 2 years?
        President Bush. I was disappointed that the bill didn't pass. I
    thought it was going to pass up until the last minute. So I look forward
    to going back to Washington to work with the interested parties to get
    it passed. I understand they're back into session to see if they can't
    get the bill passed, and I look forward to working with Members of the
    Senate and the House to get it passed.
        It's very clear I wanted the bill passed. I talked to key Members of
    the House, as did my Vice President. And we'll
    continue working with them, and hopefully, we can get a bill done. I saw
    the Speaker today said that the matter
    wasn't complete; it wasn't over; it wasn't final--that we have a chance
    to get a bill. And therefore, when I get home, I'm looking forward to
    working it.
        Thank you, sir.
        President Lagos. Thank you.

    Note: The President's news conference began at 8:10 p.m. at La Moneda.
    In his remarks, he referred to Luisa Duran de Lagos, wife of President
    Lagos; President Hu Jintao of China; former President Saddam Hussein of
    Iraq; and Prime Minister Ayad Allawi of the Iraqi Interim Government. A
    reporter referred to President Vicente Fox of Mexico. President Lagos
    spoke in Spanish, and his remarks were translated by an interpreter.